The Prosecutor General’s Office in New York asked the court not to repeal the prescription for Bitfinex

The New York State Attorney’s Office, represented by Leticia James, appealed to the State Supreme Court to reject the Bitfinex attorney’s request to cancel the earlier court order. So, James is confident that the current situation does not affect the functioning of the company as a whole, but does not allow it to receive further loans from Tether Limited and protects users from risks.

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The ministry stressed that the operator of the trading platform did not provide the authorities with documents confirming its financial stability and revealing the essence of the liquidity problems.

The prosecutor's office continues to insist that fraud is seen in the actions of Bitfinex, because the exchange has hidden the "loss" of client and corporate funds and the subsequent coverage of this hole at the expense of Tether's reserves, thereby misleading market participants, its own users and USDT holders.

Thus, James is convinced that if the court satisfies the petition of defense attorneys and Bitfinex continues to receive credit tranches from Tether, the risk that these funds will be lost forever will increase significantly. We add that, according to prosecutors, the exchange has already taken $ 750 million from Tether’s reserves.

Recall, according to some data, Bitfinex intends to raise $ 1 billion through the initial exchange offer (IEO) of LEO tokens. The site operator will redeem tokens worth 27% of the profits every month. Moreover, if the exchange manages to attract $ 1 billion by May 10, then IEO will remain closed.

On April 25, the New York Prosecutor General’s Office reported for the first time that a court order was received against Bitfinex in connection with the alleged loss of the last $ 850 million and the concealment of this fact from market participants.

It turned out that these funds were frozen in the bank accounts of Panamanian Crypto Capital processing in the UK, Poland, Portugal and the USA. Nevertheless, the exchange assured users that it is actively cooperating with the relevant departments to restore access to money.

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